This bill amends Minnesota Statutes 2024, section 297A.71, by adding a new subdivision that provides a sales and use tax exemption for purchases made by the Department of Transportation (DOT) specifically for road construction projects. The new language states that purchases of materials, supplies, and equipment that are incorporated into the construction, improvement, and maintenance of public highways will be exempt from sales and use tax.

The effective date for this exemption is set for sales and purchases made after June 30, 2025. This legislative change aims to support the DOT in its efforts to enhance public infrastructure by reducing the financial burden associated with tax on necessary construction materials.

Statutes affected:
Introduction: 297A.71